Compare the actual cost of goods sold over the last month and evaluate the companys performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.

Beginning Work in Process Inventory			0
Direct Materials:
Materials: Beginning		0
Add: Purchases for month of January		$ 20,000
Materials available for use		200,000
Deduct: Ending materials	$200,000*20/100	40,000
Materials Used	$200,000*80/100		$ 160,000
Direct Labor			8,493
Overhead			3,765
Total Costs			$ 28,258
Deduct: Ending Work in Process Inventory			0
Cost of Goods Sold			$ 172,258.30